What Are the Differences Between Crypto Futures and Options?

What Is Crypto Options?

Crypto Options are the type of derivative contract that gives purchasers the right to buy or sell assets at a determined price and date in the future. You have the right, not the obligation. The right to buy is known as a "call" option and the right to sell is known as a "put" option.

How Do Crypto Options Work?

An options seller creates the contracts of call and puts options, which have an expiration date(when the contract must be settled) and a strike price. Then options seller lists the contracts on a crypto exchange, traders buy a "call" option when they predict that the price of the underlying asset will increase in the future, and "put" option when they predict the price to decrease.

What Is Crypto Futures?

Crypto Futures is the same as Crypto Options, they are derivative products, buyers and sellers agree to trade the underlying asset at a determined price and date. Here, the buyer and seller are obligated to proceed with the trading. Crypto Futures can be used for the long term and short term. The traders buy short term when they predict the price falling, and the converse they buy long term.

What Are the Differences Between Crypto Futures and Options?

• Crypto Futures is the obligation and the Crypto Options is the right
• The risk of the Crypto Options is lesser than the Crypto Futures
• Crypto Options is flexibility than Crypto Futures
• The futures market has larger space than the options market, it is more liquid than the other.
• Crypto Futures will not be influenced by time, but the Crypto Options will affect the value as time goes.

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